Skip to content

Accounting currency

Accounting Currency or Reporting Currency is the currency in which a firm has decided to record all its accounting records of transactions and financial statements. This currency may be different from the currency with which the firm does most of its sales or purchases. However, it is most common to have Accounting currency that is the same as Functional currency - either currency of legal incorporation or the primary currency in which the firm conduct the business.

It is common for export/import businesses, especially those in emerging markets to conduct business in “major” currencies such as US Dollar or Euro while reporting in their own domestic currency for tax and financial reasons.